2012-02-20

China social mood in a graph


Social mood is an average of millions of individuals. People have a herd instinct and move with the group, which is why a social mood exists, but individuals do not necessarily follow the herd. In fact, there are many smaller groups that could have exact opposite mood. A good way to express social mood is with a graph similar to the one above, with a negative and positive portion of society. Although this graph is about real estate, the first thing I thought when I saw it was social mood. Chinese constantly talk about real estate and consider buying homes if they don't own one. It isn't as efficient a social mood signal as the stock market because the stock market has millions of trades each day, but it's a stronger signal in markets that are in a bubble.

Chinese social mood isn't as negative as the chart shows, but it does represent the trend.

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